- Over nine in ten (92%) of wealth managers and financial advisors say the number of clients they personally service has increased over the past five years
- More than six in ten (63%) anticipate further client growth of 20% or more over the next three years
The number of clients personally serviced by wealth managers, portfolio managers, financial advisors and financial planners has grown significantly during the past five years and will only continue to grow during the next three years due to the impact of technology and a growing population of mass affluent, according to new global research* from Ortec Finance, the leading global provider of risk and return management solutions for professional investors.
The global study among wealth managers and financial advisors whose organizations collectively manage around $750 billion, found over nine in ten (92%) have experienced an increase in the number of clients they’ve personally serviced during the past five years. Of these, 17% say there has been a significant increase.
Wealth Managers Expect Further Client Growth
This increase isn’t set to slow down. More than six in ten (63%) wealth managers and advisors anticipate further client growth of 20% or more over the next three years. 37% anticipate the number of clients they look after will grow by up to 20% over the next three years. 19% say the number of clients will grow by between 30% and 50%, and 1% say it will increase by more than 50%.
A major cause of this anticipated client growth is advancements in technology. More than three quarters (78%) of those surveyed said significant investment in technology means they can service more clients more effectively. Almost half (48%) said investing in technology has improved their value proposition, which is leading to growth for the company and 41% said that technology advancements mean they are empowered to provide a more client-centric approach to more clients, more effectively than ever before.
However, around two thirds (65%) of wealth managers and financial advisors believe this client growth is due to a growing population of mass affluent, high-net-worth individuals, who want to use financial advisors and portfolio managers to assist in the management of their assets.
Ronald Janssen, Managing Director Goals-Based Planning at Ortec Finance said: “Our research shows that wealth managers and financial advisors are expecting further increases in the number of clients, despite the majority already experiencing numbers increase over the past five years. While this is extremely encouraging, it also brings new challenges in terms of having the right skills, experience and technology in place to provide more clients with the best possible service. Next to that also regulations around suitability are evolving.”
Janssen adds: “Investing in appropriate, scalable technology is vitally important to ensure that advisors can effectively manage more clients in line with regulations and deliver more value by using a Goals-Based Investing approach – and ultimately benefit from the expected future rise in the number of clients looking to use their services.”
Ortec Finance provides wealth managers and financial advisors with scalable solutions that enable them to manage clients more efficiently and deliver more value to those clients. Its OPAL Planning tool supports banks, advisors and wealth management firms to translate client’s financial goals into an optimal investment strategy – providing forward-looking insights into whether clients are on-track regarding their investment objectives. Together with a fully integrated cash flow planning tool for a holistic view on the client situation, the OPAL Planning tool addresses both income and investment risk. Find out more at Ortec Finance.
About Ortec Finance
Ortec Finance is the leading provider of technology and solutions for risk and return management. It is Ortec Finance’s purpose to enable people to manage the complexity of investment decisions.
